The adage says that it is five times more expensive to get a new client (or customer) as it is to keep an existing client. So is there a formula for improving your client retention?

Alas, no. The answer will be different not just for different professions, but for each of us as individuals. Why? Because assuming that the quality of your product or service is good, what keeps people coming back is the relationship. And the elements that make your relationship with your clients special is as different (and special) as you are!

The thing is, most of us don’t actually know why our clients stay with us. We might think we do, but unless we ask, we are just guessing. It’s really important to know what that essential piece of the relationship is…so that you can do more of it, do it better, and never forget how important it is.

Here’s an example. I had a dog, an almost-half-my life companion of 15-1/2 years. She passed away last May. I’ll never forget the kindness of the staff at the veterinarian hospital: how supportive they were, and especially their total understanding when I said my final goodbyes. They even sent me a card with a beautiful poem. It still brings tears to my eyes, and when my sister-in-law’s dog was hit by a car, I passed it along to her.

I’ve since adopted two rescue dogs. Of course we’ve had numerous trips to the vet for various shots, fixing a few scrapes (they are very energetic with each other!), etc. I started noticing how expensive these things were becoming. I even toyed with the idea of checking the prices somewhere else, but I haven’t — that bond I have with them now keeps me loyal, despite the hit to my pocketbook.

Here’s the funny thing, though. Recently they added a few amenities, like coffee in the waiting room, and after-visit calls to see how my pets are doing. The former just doesn’t interest me — I don’t drink coffee. The latter, while I find touching, I also regard as somewhat of a nuisance — I don’t need more phone calls (these weren’t serious injuries)!

I’m sure they think these extras are valuable and help them keep clients. But because they’ve never asked me (or other customers), they don’t really know that they could cut the expense of these frills and reduce their prices, and it wouldn’t hurt a thing!

The moral of the story: ASK YOUR CLIENTS why they stay. In addition to you learning valuable information about your client base, you’ve also helped remind them why they stay (and further cement their decision to keep returning). And you may have even helped them put it into words that they will later share with their friends and colleagues — and that’s the best referral engine there is!

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This entry was posted on Sunday, June 11th, 2006 at 2:36 pm and is filed under Market Research, Client Retention. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.